hard · Volume Profile Analysis trading-strategies
A profile trader examines ES and identifies a Naked POC (an unvisited prior-session POC) at 5,540, while the current session is trading at 5,580. The session profile is b-shaped, with heavy volume clustered near the session high at 5,585.
Which scenario BEST supports a mean-reversion fade targeting the Naked POC?
- Price opens the next session inside the current day's value area and then immediately breaks decisively to new session highs above 5,585 on expanding range.
- The next session builds equal, balanced TPO distribution above 5,585, forming a fresh area of accepted value that sits cleanly above the original b-shape.
- The b-shaped profile's excess low is penetrated, suggesting short-term buyers are trapped and the Naked POC at 5,540 is the next major reference below.
- Naked POCs only function as legitimate downside targets when they happen to fall inside the boundaries of the current week's developing composite profile.
Sign up free to see the explanation and track your rank →
More Volume Profile Analysis trading-strategies practice
- Where is the most logical place for your protective stop-loss?
- Based on the concept of 'naked POC decay' and magnetic pull, what is the most disciplined
- What is the most defensible stop-loss placement for a short entry based on this rejection?
- How should a trader manage counter-trend resistance levels in this environment?
- If the first target is an HVN at $1.37500, what is the Reward-to-Risk (R:R) ratio of this
- What is the primary risk of using a 'fade' strategy at the VAH or VAL during a balanced se
- From a profile structure perspective, where is the most logical location to trail the stop
- What does the relationship between the session POC (5,602) and the prior-day POC (5,610) i